One would assume that the COVID-19 pandemic and subsequent lockdown would have put the fashion retailers out of business since shoppers often enjoy the experiences of seeing clothes in person. However, this has not been the case in recent months. In today’s virtual world, fashion retailers have been able to remain safe while keeping their customers up-to-date with fashion trends.
The lockdown has even allowed luxury fashion stores to place their focus on bringing more traction to their websites. The lockdown has allowed the fashion world to finally push its way into the e-commerce world, but many brands are still feeling the financial impact of the Coronavirus.
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This new fashion reality has been seen throughout the US and Europe where many fashion brands originate from. An article by Quartz has shown that clothing and accessories shops in the United States were down 62.4% in sales, while clothing, textile, and footwear shops across Europe were down 50.5% in sales compared to last year. Online stores like Asos, Boohoo, Revolve, and Farfetch have reported a 10%-45% growth in their sales, which is, of course, due to online shopping. Recently, e-commerce has made up to twice as many sales compared to in-person shopping.
Since many individuals spend their days in the comfort of their home now, activewear and loungewear top the list in the kind of clothing that people indulge in, according to Quartz. Asos has stated that their activewear sales have doubled since February, while Kohl’s reported the same. However, the lockdown has affected activewear stores in the US, like Nike, where their sales actually decreased. Additionally, the sales of evening dresses, formalwear, and day dresses have all understandably decreased as the lockdown has interfered with many events that would require formal wear.
Luxury brands have also experienced this phenomenon since they rely on shoppers to come into their shop and evaluate their merchandise before buying. On the positive side, many merchants are choosing to become more active online, which makes it convenient for shoppers to have access to their clothing.
According to the report by Quartz, luxury brands like Gucci and Saint Laurent have reported that their online sales have increased to 13% during the first half of 2020, compared to 6% in the first half of last year. In fact, the CFO of LVMH, the company that owns Louis Vuitton and Dior, stated that online shopping is going to be a “very interesting way of approaching some clients and distributing products.” The pandemic has allowed luxury brands to see the importance of having an online presence in today’s virtual world.
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Despite the increase in online sales, the fashion world has been hit hard. With many individuals experiencing the current financial struggle, buying new loungewear may not be high on their list of priorities. Thousands of retail stores remain closed while some have even stopped their production to protect the health of their workers, resulting in plummeting sales. Many brands have reported a sharp decrease in sales, despite the business coming in from their online store. While e-commerce is allowing many stores to stay afloat during these times, the financial state of many around the world leaves the fashion industry in a rut.
